Finance Board Approves $1.9M in Year-End Transfers

Board of Finance · Meeting of September 22, 2026

GUILFORD — The Guilford Board of Finance approved nearly $1.9 million in year-end transfers to close out fiscal 2025-26. Finance Director Mary Jane reported the town sold $5 million in bonds at a 3.98 percent net interest cost, with S&P and Fitch affirming AAA ratings, calling it "thrilled to be under 4 percent." The board unanimously approved $857,015 in department overage transfers, $405,610 in capital carryforwards including $100,000 toward a new Axon police equipment contract, and $300,000 from Board of Education surplus into the town's medical fund, which posted two straight months with zero claims above the stop-loss threshold. A separate $1,865,000 transfer into committed reserves, including $800,000 for future debt and $300,000 for the ongoing property revaluation, leaves the town's unassigned fund balance at an estimated $15.7 million, or 12.75 percent of budget.

Member Meghan Scanlon reported the Health Insurance Study Committee will review its first RFP in three years at an October 9 meeting. New member Todd Fanciullo was formally welcomed to the board.

In the full story:

• Who Was There
• Organizations And Documents Referenced
• The complete report — 2,441 words

Source: the Board of Finance meeting of September 22, 2026, reported from the official video recording and transcript.

Checked against the record: before publication this article was automatically compared with the meeting transcript.

The Full Article

Call to Order, New Appointments and a Technical Outage

Chairman Michael Ayles opened the meeting noting that a technical failure with the town's video system had blocked public attendance even though the board believed the problem had been fixed. Board member Elias Kabeche participated by speakerphone and video link. Ayles used the opening minutes to welcome Todd Fanciullo, appointed to the board at a September 10, 2026 special meeting, filling a vacant seat. First Selectman Matt Howey then introduced Lisa Bickford, newly hired as the First Selectman's office communications specialist, who will handle scheduling and minutes for the Board of Finance going forward. Howey described her as coming from the Connecticut Education Association. The item was purely introductory; no action was required or taken beyond the welcomes.

Approval of Minutes, Including a Substantive Correction

The board approved two sets of minutes with corrections that carried some substance. The August 17, 2026 minutes passed 5-0 with Robert Hartmann and Todd Fanciullo abstaining, as is customary for members who were not seated for the original vote language. The September 10, 2026 special meeting minutes required a correction: the draft had stated that both Amy Earls and Elias Kabeche were absent, when in fact only Hartmann was absent that night, the seventh seat being vacant at the time. The board approved the corrected language 5-0, with Hartmann and Fanciullo again abstaining.

A second, more consequential correction followed. A member pointed out that the minutes of a motion adjusting the registrar of voters' compensation structure had been recorded incompletely. The motion as originally passed rolled the registrar of voters' stipend line into the salary line, eliminated the stipend line, and raised the salary line 5 percent effective July 1, 2027 — but the minutes omitted language approving 2.5 percent annual increases for July 1 of 2028, 2029 and 2030. The board voted to reconsider and re-approve the minutes as amended to capture the full motion, again with Hartmann and Fanciullo abstaining. One member acknowledged overlooking the omission when reviewing the draft: "I totally missed that. I was, wrote it down here and I didn't write it in my, I didn't mark it up."

Standing Committees: Building Projects and Pension Fund

Under correspondence, a member asked about stream and brook work near Adams Middle School that had been delayed by weather, and separately about the status of a piping project at Melissa Jones Elementary School tied to an HVAC replacement. Mr. DeMeo, the building-related staff contact who was not present that night, had told the board's liaison he had a scheduling conflict after the meeting shifted from Monday to Tuesday. Based on information relayed to the Board of Education the prior week, the hot water loop portion of the heat-loop piping project was expected to be completed that week, with the condensing loop started the following week and finished by October 15 — the deadline after which the contractor would have to push the remaining work to next summer, increasing costs.

On the pension fund, a member noted the balance increase from the prior month reflected a substantial annual contribution made in July, not market appreciation; a second member explained the town deliberately times those contributions to the start of the fiscal year, when tax collections are highest, to maximize investment earnings over the full year. No action was required.

Board of Education Financial Report for August 2026

Board of Education staff identified in the transcript only as Linda and Katie presented the district's August 2026 financials. Expenditures for the month totaled $4,669,720.20 (a figure corrected from a typo in the printed report), representing 13.54 percent of the fiscal 2026-27 budget spent, compared with 14.67 percent at the same point the prior year. August revenue totaled $11,989.10, including $637.60 in non-resident tuition, $6,051.50 in Medicaid reimbursement and $5,300 in pre-K tuition. The district's non-lapsing education account held $455,372.65, built up by a Board of Education vote at the close of fiscal 2025-26.

A notable line item was a $50,000 payment to A&W Sanitation for unplanned water main service work at the Adams school building, funded from the site improvement line rather than the non-lapsing account. Staff said a problem was discovered with the water main during summer construction work and was addressed before it worsened. Staff also reported the district is tracking 24 private special-education outplacements against a budgeted 29, aided by a mix of students moving in and out of district, attributing the favorable position partly to several high-cost placements that did not materialize as expected.

Enrollment came up as a related topic. District staff said all four elementary schools had class sizes under state limits in every grade, avoiding the unbudgeted kindergarten hires the district has sometimes needed in past years. The district plans to update its demographic and enrollment projection study — last done roughly three years ago by the same staff under a new firm, MP Planning — once official October 1 enrollment figures are in. One member connected the renewed interest in enrollment data to a joint facilities-study presentation earlier in the fall that put a $92 million figure in its title, saying accurate enrollment projections matter because state reimbursement for future building improvements, particularly at Adams, is tied to enrollment levels.

"So I think I'm appropriate in saying under the class size limits for every grade," one member said of the elementary schools, adding that administrators had been closely watching three or four schools where a handful of additional students could have forced the district to add staff.

The board voted unanimously to accept the Board of Education expenditure report in the corrected amount of $4,669,720.

Town Government Financial Report, Bond Sale and Medical Fund

Finance Director Mary Jane reported the town had completed a $5 million, 20-year bond sale that day, drawing eight bids. Stone X Financial won with a net interest cost of 3.98 percent and a premium just under $117,000; both S&P and Fitch affirmed the town's AAA ratings beforehand. Board member Jeffrey Beatty credited the town's consistent financial management and reserve-setting practices for the favorable terms, prompting Mary Jane to note the town has kept its debt issuance in the $3 million to $5 million range and remains well below its debt thresholds.

On revenue, the town had collected 51.4 percent of budgeted revenue through August, including 54.4 percent of tax collections, exceeding the halfway mark Mary Jane said keeps the town solvent until the second tax installment arrives in January. Expenditures stood at 22 percent of budget, roughly in line with 23 percent the prior year. Mary Jane flagged that the debt principal line appeared overdrawn because the August principal payment had already posted, but said premium funds set aside would make that line whole after final payments in February.

On the audit, Mary Jane and a Board of Education counterpart confirmed the same auditing team as the prior year — despite a corporate buyout of the firm referred to as C-Viz — had been on-site for two days and the town was roughly a month ahead of last year's audit pace.

The medical self-insurance fund showed two consecutive months without any member claim exceeding the 50 percent stop-loss threshold of $87,500, a trend Mary Jane said she had not seen since 2022. August claims totaled $921,000. The fund balance figure did not yet reflect the $300,000 Board of Education transfer approved later in the meeting.

The board voted unanimously to accept the town government expenditure report in the amount of $11,967,049.

End-of-Year Transfers Closing Fiscal 2025-26

This was the meeting's most substantive agenda item. Mary Jane, after describing the transfers as something she had been "threatening all year long," walked the board through five separate actions, all previously approved that morning by the Board of Selectmen.

Operating budget transfers of $214,122 moved surplus from parks and recreation and the police department into deficits in employee benefits, finance, golf, communications, town properties and the zoning board of appeals.

General fund transfers of $857,015 covered department overages in information technology, human resources, fire and capital. Mary Jane recommended the human resources overage be drawn from the assigned fund balance for personnel, tied to two unbudgeted personnel changes, and that a fire department revenue surplus cover that department's own overage rather than drawing from a different department. Board member Robert Hartmann sought clarification on how the transfers were allocated; Mary Jane walked through the distinction between money spent from committed funds (the top of the transfer sheet) and money being carried forward for uncompleted projects (the bottom).

A separate $405,610 transfer carried forward unspent capital and department funds, including $183,070.66 for building projects such as unbudgeted repairs at the Lathrop House. Mary Jane specifically flagged a $100,000 set-aside within the police department's own surplus, unconnected to any single uncompleted project, meant to help the department absorb rising costs under a new 10-year contract with Axon covering radios, tasers and body cameras. She said the arrangement is expected to save money long-term and includes price protection against technology obsolescence, and clarified the funds do not include automated license plate readers, a topic she said the board would discuss "at some point in the future."

The board then approved transferring $300,000 of Board of Education surplus into the medical fund. Officials explained the move traces back to a $525,000 additional budget cut imposed on the Board of Education at a June 2026 special meeting, of which $200,000 came with an understanding the district would later be made whole through a surplus transfer. Mary Jane noted the Board of Selectmen had that morning considered, and declined, an alternative of drawing directly from the unassigned fund balance to shore up the medical fund, preferring to rely on the Board of Education surplus instead.

"As I've said over the last few months, if the medical fund does go in the red, that's where we're going to take the money anyway," [01:07:26] — Finance Director Mary Jane.

The largest transfer, $1,865,000 in year-end surplus moved into committed funds, broke down as $300,000 toward the ongoing property revaluation (already underway and expected to cost more than $600,000 total), $200,000 for facility projects including continued work at the Lathrop House and 52 Church Street, $40,000 to replenish a sidewalk account spent on work near Town Hall, an unspecified technology reserve, $500,000 for future building projects such as a potential Town Hall remodel, $75,000 for codification and planning tied to the Town Center South and Route 1 corridor master plan, and $800,000 set aside for future debt service to offset an anticipated spike when premium credits run out around 2030. Mary Jane said the resulting estimated unassigned fund balance of $15.7 million, or 12.75 percent of the budget, sits deliberately in the middle of the board's 10-to-15 percent policy range, and that rating agencies view the reserve, and the town's history of funding its OPEB liability by $2.5 million several years ago, as evidence of disciplined financial management.

All five transfer motions passed unanimously with no recorded abstentions.

Committee Reports: Health Insurance Study Committee

Board member Meghan Scanlon reported on the Health Insurance Study Committee's recent meeting, which is evaluating self-insured and fully insured health plan options as well as shared stop-loss insurance arrangements across multiple employers. The committee's next meeting, October 9 at 2 p.m., will include a presentation from a State Partnership Plan representative identified only as Bernie, based on updated October census data that health insurance consultant Joe Spurgeon is compiling. Scanlon said the committee is also weighing whether to split its forthcoming request for proposals, the district's first in at least three years, into separate health insurance and pharmacy benefit manager solicitations to potentially drive down costs. She noted that roughly seven to nine employees represented by Unite Here are not reflected in the Board of Education's overall census figures discussed at the meeting.

Old Business, New Business and Public Forum

No old or new business was raised, and no members of the public addressed the board, a result partly attributable to the video outage that prevented public access. The meeting adjourned on a unanimous vote.

WHO WAS THERE

Michael Ayles, Chair, Board of Finance, presided. Meghan Scanlon, member, present, reported on the Health Insurance Study Committee. Amy Earls, member, present. Robert Hartmann Jr., member, present, questioned transfer allocations. Jeffrey Beatty, member, present, abstained on two minutes votes. Elias Kabeche, member, present via phone and video due to a technical outage. Todd Fanciullo, member, present, newly appointed September 10, 2026; abstained on minutes votes predating his appointment. Matt Howey, First Selectman, present, introduced new staff and participated in discussion. Lisa Bickford, Communications Specialist, First Selectman's office, present, newly hired. Mary Jane, finance official (title not confirmed in available sources), present, presented town government and transfer reports. Linda, Board of Education staff member (title not confirmed), present, presented district financials. Katie, Board of Education staff member (title not confirmed), present, presented district financials. No members of the public attended or addressed the board; public access was blocked by a technical outage with the town's video system. Mr. DeMeo, building-related staff contact, not present; relayed information to a board liaison by phone. Dr. Payman, referenced as having briefed the Board of Education on enrollment; not present at this meeting.

ORGANIZATIONS AND DOCUMENTS REFERENCED

Stone X Financial — winning bidder on the town's $5 million, 20-year bond sale at a 3.98 percent net interest cost. S&P and Fitch — rating agencies that affirmed the town's AAA bond ratings ahead of the September 22 bond sale. C-Viz — the town's auditing firm, referenced as having undergone a corporate buyout; conducting the fiscal 2026 audit. MP Planning — consultant engaged to update the district's demographic and enrollment projection study. Axon — vendor for a new 10-year police department contract covering radios, tasers and body cameras, partly funded through a $100,000 carryforward. State Partnership Plan — insurance option to be presented by a representative named Bernie at the Health Insurance Study Committee's October 9 meeting. Branford Board of Education — regional partner providing adult education programs serving 31 Guilford residents last year. Board of Finance fund balance policy (10-15 percent of budget) — cited repeatedly as the framework for the $1,865,000 committed-funds transfer, which leaves the town at an estimated 12.75 percent. June 2026 Board of Education special meeting — cited as the source of a $525,000 mid-year budget reduction that led to the $300,000 medical fund transfer discussed September 22. Prior OPEB liability funding ($2.5 million, cited as occurring three to four years earlier) — referenced in discussion of the town's credit rating strength.